The Expected Average Rate of Return for a Proposed Investment

question 159

Multiple Choice

The expected average rate of return for a proposed investment of $8,000,000 in a fixed asset, using straight line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $12,000,000 is:

• A) 15%
• B) 12%
• C) 40%
• D) 7.5%

Understand the concept and importance of validity in educational and psychological testing.

Identify and differentiate between the types of validity (content, criterion, construct).

Recognize the role of factor analysis in determining the grouping of items in a test.

Understand the changes in the concept of validity across different editions of the Standards for Educational and Psychological Testing.